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Hansae

105630 · KOSPI · ₩105630 · 한세실업

₩8,180▼ ₩30 (0.37%)End-of-day · Oct 30, 2026 · End-of-day prices.
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Valuation model · Discounted cash flow (DCF)

We use a 5-year discounted cash flow: the value of the cash the business is expected to produce, in today's money.

Fair value per share

₩46,707

vs the current price (₩8,180)

Enterprise value
₩2.3T
Equity value
₩1.9T
WACC
5.3%

Model estimate based on the assumptions shown. Not a price target and not a buy or sell signal. This is not financial advice.

Why the model and the price differ

The model is 471% away from today's price. A gap this size usually means the market expects something the past figures don't show yet, or the model leaves something out. What we can see:

  • To match today's price of ₩8,180, the model needs an operating margin of 3.0% every year (it uses 6.8%).
  • Today's P/E is 9.3× against a typical 8.6× over the last 10 years.

Treat the model as a starting point: change the assumptions to the story you believe, and compare with the multiples check below.

Bear / Base / Bull

Bear
₩15,264
+86.6%
Base
₩46,707
+471.0%
Bull
₩116,804
+1,327.9%

Bear: revenue growth 3 points lower every year, EBIT margin 2 points lower, WACC 1 point higher. Bull: the opposite.

Assumptions

Sign in to change the assumptions and see the results update. Sign in

Cycle options

Margin path

Every year uses the cycle-average margin (6.8%).

Revenue growth

  • -4.1%

    How much sales grow that year, compared with the year before.

    Default: the last 3 years' revenue growth (-4.1% a year, annual reports), fading to 3% by year 5.

  • -2.4%

    How much sales grow that year, compared with the year before.

    Default: the last 3 years' revenue growth (-4.1% a year, annual reports), fading to 3% by year 5.

  • -0.6%

    How much sales grow that year, compared with the year before.

    Default: the last 3 years' revenue growth (-4.1% a year, annual reports), fading to 3% by year 5.

  • 1.2%

    How much sales grow that year, compared with the year before.

    Default: the last 3 years' revenue growth (-4.1% a year, annual reports), fading to 3% by year 5.

  • 3%

    How much sales grow that year, compared with the year before.

    Default: the last 3 years' revenue growth (-4.1% a year, annual reports), fading to 3% by year 5.

Business

  • 6.8%

    Operating profit as a share of revenue.

    Default: through-the-cycle average of the last 12 months and the last 5 annual reports' operating margins.

  • 27.5%

    Share of operating profit paid as corporate tax.

    Default: Korea's top corporate tax rate (25%) plus 10% local income tax.

  • 3.4%

    The non-cash cost of wearing out equipment, added back to cash flow (% of revenue).

    Default: not in the statements, so 80% of capital spending (most spending replaces equipment that wears out).

  • 4.3%

    Money spent on factories, equipment, software and other long-term assets (% of revenue).

    Default: average of the last 3 annual reports (cash flow statements; equipment and intangibles).

  • 22%

    Stock and unpaid customer bills, less unpaid supplier bills, as a % of revenue. Each year's extra revenue ties up this much more cash.

    Default: working capital (current assets less cash and deposits, minus current liabilities other than borrowings) as a share of revenue, averaged over the last 3 years.

Discount rate

  • 2%

    How fast cash flows keep growing every year after year 5.

    Default: about Korea's long-run inflation plus real growth.

  • 4.01%

    Yield on Korea's 10-year government bond: the return with almost no risk.

    Default: Korea Treasury Bond 10-year yield on 2026-10-30.

  • 0.6

    How much the share moves when the market moves: 1 means just like the market.

    Default: 104 weeks of weekly returns against KOSPI (official index); raw beta 0.08, adjusted toward 1 and kept between 0.6 and 2.0.

  • 5.5%

    The extra return investors want for owning shares instead of bonds.

    Default: a typical premium for Korean shares.

  • 5.51%

    The interest rate the company would pay to borrow.

    Default: the 10-year yield plus a 1.5% credit spread.

Starting point

Revenue (TTM to H1 2026)
₩2T
Net debt (borrowings and leases − cash and deposits)
₩523B
+ Stakes and investments
₩74B
Associates, long-term financial assets and deposits (book value)
Shares
40,000,000
Share price
₩8,180
Market cap
₩327B

TTM = trailing 12 months: the last four reported quarters added together. "TTM to H1 2026" is the 12 months up to the latest quarterly or half-year report (H1 = to the end of June). Year 1 grows from there.

Past years and projection

Grey columns are reported results from the annual reports (after-tax EBIT at the model's tax rate), so you can check the growth and margin assumptions against the past. Years 1–5 are the model.

FY2023FY2024FY2025Year 1Year 2Year 3Year 4Year 5
Revenue₩1.7T₩1.8T₩1.9T₩1.9T₩1.9T₩1.9T₩1.9T₩2T
Growth−22.5%5.2%8.0%−4.1%−2.4%−0.6%1.2%3.0%
EBIT₩168B₩142B₩83B₩132B₩129B₩128B₩130B₩134B
EBIT margin9.8%7.9%4.3%6.8%6.8%6.8%6.8%6.8%
After-tax EBIT₩122B₩103B₩60B₩96B₩94B₩93B₩94B₩97B
+ Depreciation———₩66B₩65B₩64B₩65B₩67B
− Capital spending₩45B₩60B₩134B₩84B₩82B₩81B₩82B₩85B
− Working capital−₩74B₩12B−₩2.6B−₩18B−₩10B−₩2.5B₩5B₩13B
Free cash flow———₩97B₩87B₩79B₩72B₩67B
Discount factor———0.9500.9020.8570.8140.774
Present value———₩92B₩78B₩67B₩59B₩52B

Terminal value ₩2.5T, worth ₩2T today: 85% of enterprise value. It assumes spending settles at 110% of depreciation once growth slows to the terminal rate.

Cross-check: what the market has paid before

For cyclical businesses, analysts check a DCF against the multiples the stock has traded at through past cycles. Price / book is the usual anchor for them: P/E looks highest at the bottom of a cycle, when earnings are smallest, and lowest at the top. The price each band would give today:

LowTypicalHigh
Price / book (book value ₩18,418 a share)Now 0.44×₩9,7280.53×₩21,4081.16×₩33,8851.84×
Price / earnings (last 12 months: ₩882 a share)Now 9.27×₩5,4086.13×₩7,5448.55×₩9,99811.3×
P/E on run-rate earnings (Q2 2026 × 4: ₩1,314 a share)Now 6.22×₩8,0566.13×₩11,2388.55×₩14,89211.3×

Low, typical and high are the 10th percentile, middle and 90th percentile of month-end multiples since 2021, each against the latest report out by then, per share at today's share count; loss years and P/E above 100 are left out. Run-rate earnings are one quarter × 4, not a forecast. Model estimate based on the assumptions shown. Not a price target and not a buy or sell signal.

Sensitivity

Fair value per share as two inputs change; the middle is the current case.

WACC ↓ · Terminal growth →1.0%1.5%2.0%2.5%3.0%
4.3%₩51,547₩59,972₩72,088₩91,023₩124,828
4.8%₩43,187₩49,089₩57,106₩68,636₩86,653
5.3%₩36,788₩41,095₩46,707₩54,330₩65,291
5.8%₩31,732₩34,975₩39,068₩44,399₩51,639
6.3%₩27,638₩30,140₩33,218₩37,102₩42,161

Now (TTM)

Market cap
₩327B
Enterprise value
₩754B
P/E
9.3×
P/B
0.4×
P/S
0.2×
EV/EBITDA
—
Dividend yield
0.0%

Over time (at each year end)

20252024202320222021
Price₩13,300₩14,170₩21,050₩15,400₩21,950
Market cap₩532B₩567B₩842B₩616B₩878B
P/E9.3×9.8×7.5×7.2×13.0×
P/B0.7×0.8×1.3×1.1×1.9×
P/S0.3×0.3×0.5×0.3×0.5×
EV/EBITDA—————
Dividend yield0.0%0.0%———

Versus similar companies

CompanyP/EP/BP/SEV/EBITDADividend yield
Hansae9.3×0.4×0.2×—0.0%
F&F4.6×1.2×1.2×—4.3%
LF5.7×0.4×0.3×4.6×3.2%
Chokwang Leather44.9×0.7×5.0×59.8×0.0%
Handsome7.1×0.3×0.3×—0.0%
JS4.0×0.6×0.2×—5.3%
Ilshin Spinning5.1×0.2×0.4×—3.9%
Similar companies (median)5.4×0.5×0.4×32.2×3.5%

Calculated from end-of-day prices and filed financial statements. Not a recommendation. This is not financial advice.

Also known as: Hansae / 한세실업 / 105630 / KRX:105630

Source: KRX statistical information